$IPO Surge Sign Of The Top?

Investors looked to the performance of recent IPOs for signs of a market top Monday. $IPO, an ETF that includes a basket of companies that debuted on the stock market less than two years ago, hit StockTwits’ trending bar mid-day.

the fact that IPO s have been so out of control recently, makes me ask if we are near a market top? $COUP $CARA $SPY $IPO

— Daniel Ward (@swingtrades99) Mar. 9 at 06:42 PM

The top holding in the IPO ETF, launched by Renaissance Capital late last year, is Zoetis, $ZTS, an animal vaccine and medicine manufacturer that raised $2.2 Billion in a January 2013 initial public offering. $IPO also counts Facebook, $FB, and Twitter, $TWTR, among its top ten holdings.

After years of companies avoiding volatile markets, IPOs have made a comeback. There were 222 initial public offerings in 2013, according to Renaissance Capital. And 2014 is on track to beat that number. The number of initial filings in January and February were the highest in more than a decade. Six IPOs are planned to price this week including antibiotic manufacturer Achaogen, $AKAO, healthcare software company Castlight Health, $CSLT, and biotech antibiotic developer Dipexium Pharmaceuticals, $DPRX.

Not all cashtaggers see signs of a top in the recent surge of initial public offerings. Though IPO filings are at their highest level in more than a decade, they are still at half the 2000 peak, noted StockTwits founder Howard Lindzon.

Lots of room … @IPOtweet $IPO filings running at highest level since 2000 but still at half the levels of 2000.

— Howard Lindzon (@howardlindzon) Mar. 6 at 08:12 PM


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